Koramangala seeing growth in luxury car sales

KORAMANGALA: Even with the economic slowdown or fuel price hike, the wealthy of Koramangala do not seem very keen on curbing their need for speed aka luxury cars. Around 14 percent households in Koramangala are in the millionaire category. Instead of saving money by modifying their economy cars to look like sportsters they now prefer to buy high-end cars.

JUMP IN SALES

High-end car dealers in the vicinity claim that the sales have doubled since the past two years, be it the new ones or pre-owned cars. "BMW, Mercedes and Audi are the most in demand," Sibgathulla (Sibbu), manager of Royal Carz, Koramangala said. "This year, in March, we sold about 100 BMWs, 70 Audis and around 50 Mercedes. With increased sales, we have marked a 30-40 percent increase in profit."

He then added, "Bangalore Road Transport Office (RTO) recorded the highest numbers of registrations from Koramangala for high-end cars. We are the only high-end car dealers in Koramangala. There is potential for this business here."

HOT WHEELS

These premium cars are targeted towards corporate and young customers. Yaresh B Kothari, who tracks the automobile industry for Angel Broking explained, "Size of the luxury car market (SIAM classification) is only 0.3 percent of the passenger car industry and the major players in the segment are BMW-7 series, Mercedes-S class, Audi-A8 and Volkswagen - Phaeton."

He said, "Mix of both young entrepreneurs as well as corporates are buying these cars." Agreeing with him, Sibbu said, "Youngsters and corporates are the main buyers."

Inderjeet S Arora, an IT professional from Koramangala is saving up to buy a BMW. "A while ago, I was planning to buy two small cars, but now I want to experience class, as nothing beats a class experience," he said, "Like they say - Live it large!."

PASSION FOR LUXURY

The passion to possess these metallic beauties has caught this particular section of Koramangala. With a stuffed wallet in the pocket, they can afford to scratch it. As Mr Arora put it, "The bug to possess world class products has bitten me. Especially now that i can afford it."

Sibbu also suggested that the influx of extra jobs is an added advantage. "The increase in jobs in Bangalore is driving these sales." said Sibbu. According to Mr Kothari, "Rising affluence of the Indian consumer and the aspiration to possess premium products is driving the growth."

BRAKES ON MODIFICATION

The trend of upgrading a simple car into a high-end car has somehow weakened in the course of time. Initially, people preferred spending on customising their small car into a sports car or luxury car by modifying it. But, now, residents of Koramangala rather spend their money on buying their dream car. Usman Khan, owner of Street Beat, a car modification establishment for the past 12 years expressed, "We don't see the craze of yesteryears for modification. Such work needs time and not many have the patience for it." The sluggish car modification trend reflects on the profit from sales of accessories, which has seen a dip of 5 percent, he added. Sibbu has the last word, "Why would you need to modify your cars. It decreases the resale value."